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V0097-23 30 January 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · amortización

Deductibility of vehicle depreciation in corporate tax and VAT allocation

A company enquires about the deductibility of vehicle amortisation in corporate tax and the right to VAT deduction. The DGT responds that amortisation is deductible in Corporate Tax if accounting registration, accrual and justification requirements are met, and that in VAT a 50% presumption of allocation applies to tourist vehicles.

The DGT's ruling

In Corporate Income Tax, the depreciation of a vehicle is deductible if it is considered tangible fixed assets, is imputed on an accrual basis, and its effective depreciation is justified. Regarding VAT, passenger cars and motorcycles have a presumption of business use of 50%, although the taxpayer may prove a different degree of use. For the VAT deduction, it is necessary to possess the original invoice and prove the business use through admitted means of evidence, as mere accounting entry is not sufficient.

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